Bill C-12
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Archived version of the Employment Insurance Act
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BILL C-12
PART III
PREMIUMS AND OTHER FINANCIAL MATTERS
Premiums
66. Annual premium rate setting
66. The Commission shall, with the approval of the Governor in Council on the recommendation of the Minister and the Minister of Finance, set the premium rate for each year at a rate that the Commission considers will, to the extent possible,
(a) ensure that there will be enough revenue over a business cycle to pay the amounts authorized to be charged to the Employment Insurance Account; and
(b) maintain relatively stable rate levels throughout the business cycle.
67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set by the Commission.
68. Employer's premium
68. Subject to sections 69 and 70, an employer shall pay a premium equal to 1.4 times the employees' premiums that the employer is required to deduct under subsection 82(1).
69. Premium reduction - wage-loss plans
69. (1) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer's premium where
(a) the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy or child care under a plan that covers insured persons employed by the employer, other than one established under provincial law, would have the effect of reducing the special benefits payable to the insured persons; and
(b) the insured persons will benefit from the reduction of the employer's premium in an amount at least equal to 5/12 of the reduction.
Provincial plans
(2) The Commission shall, with the approval of the Governor in Council, make regulations to provide a system for reducing the employer's and employee's premiums when the payment of any allowances, money or other benefits because of illness, injury, quarantine, pregnancy or child care under a provincial law to insured persons would have the effect of reducing or eliminating the special benefits payable to those insured persons.
Included provisions
(3) The regulations may include provisions
(a) prescribing the manner and time for making an application for a premium reduction;
(b) prescribing the standards that must be met by a plan to qualify for a premium reduction and the time during which the plan must be in effect;
(c) prescribing the method for determining the amount of reduction for plans that meet the prescribed standards and the use to be made of actuarial calculations and estimates;
(d) prescribing the manner in which insured persons are to benefit from the premium reduction;
(e) providing for the making of decisions relating to premium reduction and appeals in cases of dispute;
(f) prescribing how the insured earnings of insured persons will be reported by employers to the Department of National Revenue; and
(g) generally, providing for any other matters necessary for carrying out the purposes and provisions of subsections (1) and (2).
Late applications
(4) If an application for an employer's premium reduction is made within 36 months after the time prescribed for making it, the Commission may, subject to prescribed conditions, regard the application as having been made at the prescribed time if the applicant shows that there was good cause for the delay throughout the period beginning at the prescribed time and ending on the day when the application was made.
Reconsideration of application
(5) The Commission may reconsider any decision relating to an employer's premium reduction within 36 months after the date of the decision and any new decision that it makes shall apply in place of the reconsidered decision.
70. If insurable earnings are paid to a person after the end of the year in which their insurable employment occurred, the insurable employment is, for the purposes of determining insurable earnings and premiums payable, deemed to have occurred in the year in which the insurable earnings are paid.
Employment Insurance Account
71. Employment Insurance Account established
71. There shall be established in the accounts of Canada an account to be known as the Employment Insurance Account.
72. Payment into Consolidated Revenue Fund
72. There shall be paid into the Consolidated Revenue Fund
(a) all amounts received under Parts I and III to IX, as or on account of premiums, fines, penalties, interest, repayment of overpaid benefits and benefit repayment;
(b) all amounts collected by the Commission for services rendered to other government departments or agencies or to the public; and
(c) all amounts received on account of principal or interest on loans made by the Commission under Part II or as repayment of overpayments made by the Commission under that Part.
73. Credits to Employment Insurance Account
73. There shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund
(a) an amount in each year equal to the amount receivable as or on account of premiums payable for that year under this Act;
(b) any other amounts provided out of the Consolidated Revenue Fund appropriated by Parliament for any purpose related to employment insurance and administered by the Commission; and
(c) an amount equal to all benefit repayments receivable under Part VII.
74. There shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund an amount equal to the premiums required to be paid by Her Majesty in right of Canada as employer's premiums for persons employed in insurable employment by Her Majesty in right of Canada.
75. Other credits to Employment Insurance Account
75. There shall be credited to the Employment Insurance Account all amounts paid into the Consolidated Revenue Fund that are
(a) received as or on account of penalties imposed under section 38, 39 or 65.1 and repayments of overpaid benefits, except interest and penalties on benefit repayment;
(b) collected by the Commission for services rendered to other government departments or agencies or to the public;
(c) received on account of principal or interest on loans made by the Commission under Part II;
(d) received as repayments of overpayments by the Commission under section 61 for employment benefits and support measures authorized by Part II;
(e) received as repayments of overpayments by the Commission under agreements entered into under section 63; or
(f) received as interest under section 80.1.
76. The Minister of Finance may authorize the payment of interest on the balance in the Employment Insurance Account in accordance with such terms and conditions and at such rates as the Minister of Finance may establish and the interest shall be credited to the Employment Insurance Account and charged to the Consolidated Revenue Fund.
77. (1) There shall be paid out of the Consolidated Revenue Fund and charged to the Employment Insurance Account
(a) all amounts paid as or on account of benefits under this Act;
(b) all amounts paid under section 61 for employment benefits and support measures authorized by Part II;
(c) all amounts paid under paragraph 63(a); and
(d) the costs of administering this Act, including administration fees or costs paid under section 62 or paragraph 63(b).
Payment by special warrants
(2) Notwithstanding the Financial Administration Act, amounts mentioned in paragraph (1)(a) shall be paid by special warrants drawn on the Receiver General and issued by the Commission by electronic means or bearing the printed signature of the Chairman and Vice-Chairman of the Commission, and amounts mentioned in paragraphs (1)(b) and (c) may be paid by the special warrants.
No charge for negotiation
(3) The special warrants are negotiable without charge at any financial institution in Canada.
78. Maximum amount that may be paid under Part II
78. The total amount that may be paid out by the Commission under section 61 and pararaph 63(a) and charged to the Employment Insurance Account under this Part in a fiscal year must not exceed 0.8% of the insurable earnings of all insured persons from which the prescribed amount is deducted under subsection 82(1) in that year as or on account of employee's premiums, as estimated by the Commission and set out in the Main Estimates tabled in Parliament.
79. The Minister shall, with the concurrence of the Minister of Finance,
(a) submit to the Treasury Board for approval a plan for each fiscal year estimating the amounts to be paid for that year under Part II; and
(b) have the plan included in the Main Estimates tabled in Parliament for the fiscal year.
80. (1) If the amount standing to the credit of the Employment Insurance Account is not sufficient for the payment of amounts authorized to be charged to that Account, the Minister of Finance, when requested by the Commission, may authorize the advance to the Account from the Consolidated Revenue Fund of an amount sufficient to make the payment.
Advances repayable
(2) The advance shall be credited to the Employment Insurance Account and be repaid in such manner and on such terms and conditions as the Minister of Finance may establish.
Repayment
(3) The repayment of the amount advanced and the interest on it, if any, shall be charged to the Employment Insurance Account.
Regulations - payment of interest
80.1 (1) The Commission may, with the approval of the Governor in Council, make regulations respecting the payment of interest on amounts owing to Her Majesty under this Act, other than Parts IV and VII, including regulations prescribing
(a) rates of interest, or the manner of calculating rates of interest, payable;
(b) terms and conditions for the imposition and payment of interest; and
(c) terms and conditions under which the Commission may waive, reduce or write off the interest payable.
Debt due to Her Majesty
(2) Interest payable under this section is a debt due to Her Majesty and may be recovered in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act, including the manner in which an amount owing under Part I may be recovered under subsection 47(2) or section 126.
Limitation
(3) No interest due under this section may be recovered more than 72 months after the day on which the liability to pay it arose.
Exclusion of Financial Administration Act
(4) Section 155.1 of the Financial Administration Act does not apply in relation to amounts owing to Her Majesty under this Act, other than Parts IV and VII.
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